CVS Reports Strong Quarterly Earnings Amid COVID-19 Efforts

CVS pharmacy

CVS posted strong second-quarter earnings, upped its estimates for 2020 profits and renewed its commitment to fighting COVID-19, the company reported on Wednesday (Aug. 5). Total revenues increased by 3 percent, to $65.3 billion, compared to the same quarter in 2019.

Net income for CVS in the second quarter rose to $2.99 billion, from $1.93 million the previous year.

CVS said revenue growth came from throughout the company. The company, however, did see a drop in revenues resulting from a reduction in prescriptions resulting from fewer provider visits due to the pandemic. Also, CVS said, its retail segment was affected some by shelter-in-place orders.

“We’re a health innovation company that is built to meet the evolving needs of the millions we serve every day,” said CVS Health President and CEO Larry J. Merlo. Woonsocket, R.I.-based CVS acquired insurer Aetna in 2008. At the time, Merlo vowed “to transform the consumer health experience and build healthier communities by offering care that is local, easier to use, less expensive and puts consumers at the center of their care.”

In its quarterly report, Merlo said CVS continues “to navigate the health, social and economic impacts of COVID-19. Our earnings in this environment demonstrate the strength of our strategy and the power of our diversified business model.”

One COVID-19 initiative the health giant has undertaken is a program to launch COVID-19 testing sites at designated CVS Pharmacy drive-thru locations.

Merlo said in a May announcement, “While the large-scale test sites we’ve been operating since early April have proven successful, this new approach allows us to utilize our presence in communities across the country and bring testing closer to home. Our frontline employees will continue to play a critical role in the testing process, with members of their communities directly benefiting from their dedication and selflessness.”

Now, CVS said, it has opened more than 1,800 test sites at drive-thru locations.

In addition, the company said, it has launched “Return Ready,” a COVID-19 business-to-business testing program.